According to the latest data collected regarding the tourism industry of Spain, it was evident that the country has welcomed over 9 million international travellers during the month of July. This massive number is only a reflection of 92% of the pre-pandemic level of inbound tourism in the country, which is a great indication of Spain’s tourism industry returning to the pre-pandemic state.
Based on the Economic analysis conducted by ING, it is suggested that it would take another year for tourism in Spain to completely bounce back to what it used to be before the pandemic struck the international tourism market.
Thanks to the rise in domestic tourism, the tourism industry of Spain was able to survive without international visitors.
Certain areas have already made a full comeback to pre-Covid levels, like the Canary Islands and Madrid. Since half of the new jobs created in Spain during the second quarter of 2022 were related to the tourism industry, the employment levels in the country have also recovered.
However, ING had already warned the tourism industry of Spain about the consequences and how much of an uphill battle the road to recovery would be.
ING has stated in its analysis, “As tourism is a key economic sector in Spain, contributing 14% of total GDP in 2019 according to the World Travel and Tourism Council, a continued recovery is a substantial factor underpinning economic growth. The uncertainty related to the war in Ukraine, rising inflation, and high energy prices continue to pose a risk to tourism recovery.”
“However, the sharp decline in consumer confidence shows that consumers are increasingly concerned about high inflation and may begin to cut back on their tourism spending. This will also weigh on international tourist arrivals, as one in three incoming tourists are from the UK and Germany, two countries that have been hit very hard by the energy shock,” ING further added.